The House of Representatives of Japan recently passed a new regulation on crypto assets affecting exchanges and custodians, the Payment Services Act and the Financial Instruments and Exchange Act. However, the country's crypto-gambling industry still adheres to the strict rules of gambling
However, Japan passed a federal law in July 2018, which allows physical casinos in the country: “Japan will open its offline casino license to major players after the Olympics next year,” said Hugh. - It is unclear who will receive the licenses for Tokyo, Osaka, Okinawa and Hokkaido. We believe that online casinos will only follow after the start of the work of an offline casino. ”
Japan's endorsement of “integrated resorts” is not yet felt by the cryptocurrency industry. The integrated resort is a comprehensive entertainment complex with a casino, shopping centers, theaters, hotels and theme parks. While Prime Minister Shinzo Abe introduced such casino legislation as part of his overall growth strategy, Japan did not so much welcome crypto gambling
Crypto Gambling in Japan
Cryptocurrency gambling in Japan is not as widespread as one might think, given the country's track record of introducing cryptocurrency rules at an early stage, which may be due to her experience with the collapse of Mt. Gox, the Japanese cryptocurrency exchange that went bankrupt in 2014.
In early 2019, the Blockchain network Tron, which claims to be building infrastructure for a truly decentralized Internet, blocked gambling apps in its decentralized app store (dapp) in Japan after pressure from Japanese regulators.
actively blocks access to some dapps, which led Tron's chief technology officer and co-founder Lucien Chen to leave the team. He cited a mismatch between the commitment to the throne of decentralization and his actions, which, according to Chen, were more inherent in central education.
How does cryptocurrency gambling work?
Blockchain-based gambling, for the most part, occurs in two ways: in a chain and out of a chain.
Over-the-counter cryptocurrency gambling includes physical and online casinos accepting cryptocurrency, mainly Bitcoin (BTC), as a method of depositing to an online casino account.
These institutions often use a third-party custodian, such as BitPay, to convert bitcoin or other cryptocurrencies into local fiat currency. There are online casinos that work cleanly without fiat bills, although they pay in Bitcoin.
takes place on the blockchain using smart contracts, which include a decentralized application (Dapp), which has a backend code that runs on the blockchain network instead of traditional centralized servers.
It is much easier for the government to go after the off-net casino. Crypto-gambling
casinos often prohibit IP addresses, blocking access from certain countries. When trying to use Bitcoin-accepting gaming sites from the United States, users are more likely to be blocked.
Online casinos and other more decentralized or distributed methods of online gambling are also not completely protected from the effects of state regulation, as we saw with Tron's refusal to show gambling dapps to Japanese users, according to the Cointelegraph. Japanese Internet users, however, can use a VPN to access Tron's game dapps or blocked dapps from anywhere. Cryptocurrency gambling really remains the subject of heated debate in Japan. However, no formal guidelines have yet been introduced.
Global snapshot of crypto gambling regulation
While most countries have official rules for online gambling, only a few countries regulate crypto gambling, including the United Kingdom, Italy, the Netherlands, Greece, Poland, and Belgium.
In many countries, bitcoin is not considered a legal payment method in accordance with existing rules, so it should not be used in gambling. Obviously, in different countries it is necessary to bring more clarity to this issue. Perhaps the most notable example is Japan, where the gambling industry exceeds the Nevada industry by more than $ 4 billion and is valued at $ 15.8 billion.
In the UK, many online gambling platforms and service providers accept cryptocurrency. Cryptocurrency-oriented service providers must comply with UK gambling laws. There, sports betting is an extremely popular activity, turning into a 700 millionth industry. Several crypto-oriented sports betting sites can also be found on the Internet.
While the UK Gambling Commission permits gambling in Bitcoin, it also issued a warning on its website against unreliable service providers. Users are encouraged to “be careful when using bitcoin because of the risks associated with it.”
However, the benefits offered to players by cryptocurrencies should not be overlooked. Bitcoin provides a certain degree of confidentiality, but not anonymity. No personal information is transmitted during a Bitcoin transaction, but a person trying to convert BTC to fiat should be identified in most countries through know your customer (KYC) and anti-money laundering (AML) procedures.
On the other hand, privacy coins, such as Monero (XMR) and Zcash (ZEC), give their users greater personal protection and, although they are less widely accepted than Bitcoin, are known to be an obstacle to the investigative capabilities of law enforcement agencies. Joseph Hugh believes that tightening the rules of crypto will help those who use digital currency for legal purposes:
“The role of all governments is to try to regulate any financial activities of their citizens, and no one can blame them, except for people who are in the gray and fish business. I strongly believe that dapps are here to stay, because the borders of the country are not may prevent people from ultimately reaching them. ”
Despite the many regulatory and technical problems that a successful introduction to casinos faces, the global gambling industry is becoming more and more friendly to cryptocurrency. Online casinos and even the famous Las Vegas establishments are beginning to accept bitcoin and other cryptocurrencies, which is a trend that we are likely to continue to see in the future.
Some enthusiasts began to invent quite a new and interesting approach to gambling, the So-called pvp instant games between players. One of these projects is called BattleHashes
, it takes quite stable altcoins and shows a fair choice of the winner.